On 11 November 2013, Slovenia notified the EC about its intention to recapitalize Abanka Vipa d.d.

Abanka is the third largest commercial bank of the country and the largest privately owned bank in Slovenia. Total assets of the bank amount to EUR 3.6 billion. (para. 4, letter from the EC to Slovenia, 18.12.2013)

Due to the ongoing recession in Slovenia, the bank suffered from an increase in the non-performing loans (NPLs). The NPLs increased from EUR 553 million in 2011to EUR 762 million in 2012 and finally to EUR 954 million in 2013. Recapitalisations on the market failed and the increase in the demanded core tier 1 capital ratio (9 per cent from 31 December 2013) finally required a recaplisation by the state.

On 1 August 2013, the state set up a support scheme that allows for a state capital injection of max 16.6 per cent of the total risk weighted assets. This leads to a capital injection of EUR 348 million. (para. 16)

The EC finds that: 'The measure confers an advantage to the beneficiary of the aid, the Bank' and 'the Measure confers a selective advantage to it' (para. 25)

The EC concludes that: The Measure distorts competition as it allows the Bank to obtain capital resources necessary to avoid insolvency and continue operating in the market' and 'the Measure also affects trade between Member States as the Bank competes in the Slovenian market, where some of the Bank's competitors are subsidiaries and branches of foreign banks.' (para. 27)

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.